There was a recent article in "Automotive News" regarding the Lithia group's success with service drive VSC sales.  Here is a link to that article  http://www.autonews.com/article/20130408/RETAIL07/304089992/service... 

Our agency, AGS Direct, introduced service drive VSC sales to this dealer group in 2009.  We realized, after seeing what 2008 had done to our industry....that a new means of generating income HAD to be found.  How do you generate profit when car sales plummet? When drivers are only getting the most necessary of repairs done to their vehicles? 

The average finance department sells VSC's to 50% of their customers.  This means half of the people coming into your service department do NOT have a VSC.  What IF you could sell them one?  What if that customer who USED to purchase a new vehicle every 2 years (so has never seen the need to purchase a contract) is now unable to? What about that customer who has 72,000 miles on their vehicle, and wishes they had bought a VSC, because they just whipped out a credit card to pay for their $1200 repair.

But, who has an additional $2500-$3000 to spend right now? People are still recovering from the hit on our economy.  So, what AGS Direct (AutoGroup Services) developed was a program specifically designed for this customer!  We have a computer program that will generate a quote in seconds for this customer, showing them a selection of terms/miles that will fit their needs.  Along with the down payment (10%) and monthly payment on the plan.  To keep the dealership from having to complete an inspection on the vehicle, we have designed VSC's with 30 day and 1000 mile waiting periods before coverage goes into effect.

NOW you have a couple of different profit sources you did not have before! Profit from the sale of the contract.  Profit from the future RO's.  And, profit from the sale of the next vehicle (they will already be in the habit of driving to your dealership, right??)  Just what we have all looked for.  

Feel free to ask me any questions you may have about HOW this program can work for your dealership, or how to improve a similar program you may be trying on your own!  http://www.autogroupservices.com